BUZZ-Yum China's Hong Kong shares hit 8-week high on robust Q4 earnings

Reuters
02-07
BUZZ-Yum China's Hong Kong shares hit 8-week high on robust Q4 earnings

** Hong Kong shares of Yum China 9987.HK jump 7.7% to HK$392.20, biggest one-day rise since September 27

** U.S.-listed stock YUMC.N surged 9.1% on Thursday

** Yum China said fourth-quarter total revenues increased 4% to a record high of $2.6 billion, operating profit up 36% at $151 million

** Restaurant operator says full-year total revenues rose 3% to $11.3 billion, a record level since spin-off, with operating profit up 5% at $1.2 billion

** Nomura keeps "Buy" rating and lifts PT of Hong Kong-listed stock to HK$438 from HK$415 and the U.S. stock to $56.2 from $53.2, saying same-store sales gains further momentum for KFC and Pizza Hut, while FY25E guidance is a positive signal

** CMB International maintains "Buy" and raises PT to HK$484.83 from HK$364.20, Q4 results in-line but recent trends are constructive with positive SSSG during CNY, no negative impact on traffic post price hikes for KFC

** Hong Kong-listed stock rose 12.6% last year, U.S. shares surged 13.5%

(Reporting by Donny Kwok)

((donny.kwok@thomsonreuters.com))

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